Catering company Host reveals profit rise despite drop in turnover

25th March 2010, 11:05am

Host Contract Management, the independent national catering company which now has over 75 contracts, has announced a significant rise in pre-tax profits for the year ending 31 December 2009, despite a 21% drop in turnover.

Pre-tax profits rose from £41,000 to £209,000 for the year to 31 December 2009.

The company, which operates contracts in business & industry, healthcare and independent schools, achieved these results by taking immediate measures when the economy started to slow at the end of 2008.

Cost controls were implemented, sales were strengthened, unprofitable contracts were shed and purchasing improved. No redundancies have had to be made from the core business.

Host managing director and company founder Jerry Brand said: "Last year was one of the toughest years of trading I can remember in my 27 years in the business, but we have come through without having to make any redundancies in our core business."

"Companies are re-tendering their contracts more often and expecting better quality for less money – sometimes making the contracts unprofitable. We are now taking a much firmer line on marginal business."

"During 2009 we have matured as a company. We have kept a tight rein on our own expenditure, negotiated a new purchasing deal with two key suppliers, and our clients, and prospective clients, have responded positively to our ethos on cost transparency which gives them access to real-time spending on catering supplies on a daily basis and the ability to control costs more easily."

In addition, Host has unveiled a new corporate image, giving it a modern, vibrant feel based around five icons that represent the company's philosophy: honest food, bright ideas, passionate people, careful spending and an ethical approach.

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